The largest digital services provider in Russia

Rostelecom reports consolidated IFRS financial results for the third quarter and nine months, ended September 30, 2011

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Moscow – December 8, 2011 – Rostelecom OJSC (the “Group”) (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced its unaudited consolidated* IFRS financial results for the third quarter and nine months, ended September 30, 2011. Video version of this press-release is available on the Company’s websitehttp://www.old.rt.ru/en/centr-invest/financial/IFRS/detail.php?SECTION_ID=1091. 


THIRD QUARTER FINANCIAL HIGHLIGHTS

- Consolidated revenues up 8% year on year to RUB 73.9 billion;

- OIBDA** up 9% year on year to RUB 29.5 billion;

- OIBDA margin increased to 39.9%;

- Net income2 up 1% year on year to RUB 10.3 billion;

- Capital expenditures amounted to RUB 15.4 billion or 21% of consolidated revenues.

 

NINE MONTHS FINANCIAL HIGHLIGHTS

- Consolidated revenues up 7% year on year to RUB 217.5 billion;

- OIBDA up 5% year on year to RUB 85.5 billion with OIBDA margin of 39.3%;

- Net income up 2% year on year to RUB 29.4 billion;

- Capital expenditure*** of RUB 40.9 billion representing 19% of the consolidated revenues;

- Net debt**** of RUB 138.1 billion (net debt / annualized OIBDA of x1.3) as of  September 30, 2011.

 

NINE MONTHS OPERATING HIGHLIGHTS

- Total broadband subscriber base up 27% year on year to 7.9 million with revenues increasing by 21% to RUB 34.7 billion;

- Total Pay-TV subscriber base increased by almost seven times year on year to 5.8 million;

- Total subscriber base for local telephony services decreased by 3% year on year to 28.8 million.


Full press-release


* Combination of consolidated financial statements of North-West Telecom OJSC, CenterTelecom OJSC, Southern Telecommunications Company OJSC, VolgaTelecom OJSC, Uralsvyazinform OJSC, Sibirtelecom OJSC, Far East Telecom OJSC (“RTOs”), Dagsvyazinform OJSC and Rostelecom OJSC, which had been under common control of Svyazinvest OJSC and were merged on April 1, 2011.

** Here and below, please refer to Attachment 1 to this statement for a full definition of OIBDA

*** Here and below, capital expenditure (“CAPEX”) comprises cash spent on purchase of property, plant and equipment and intangible assets

**** Here and below, net debt is calculated as the sum of long-term loans and short-term borrowings minus cash and cash equivalents and short-term investments